Brief - The Hustle

Why are gas prices skyrocketing?

Written by Jacob Cohen | Mar 10, 2022 9:04:36 AM

Remember the good old days (a year ago) when gas was under $3? Prices are up 50%+ since, and here’s why:

  • Russian oil is de facto banned globally, and investors are pricing gas as if it didn’t exist.
  • Ramping up production is hard, plus producers aren’t used to the Biden administration encouraging drilling.
  • With omicron seemingly behind us, US car trips have increased 25% since the start of 2022.

Understandably, Uber drivers are feeling it, and some are now asking Uber to raise rates so they can afford to drive.